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Eurozone loans to private sector growing again: ECB

Fri, Jun 26, 2015 - 4:53 PM

Loans to the private sector in the euro area, a gauge of economic health, have started growing again, suggesting the European Central Bank's monetary policy is gradually working, ECB data showed on Friday.

PHOTO: BLOOMBERG

[FRANKFURT] Loans to the private sector in the euro area, a gauge of economic health, have started growing again, suggesting the European Central Bank's monetary policy is gradually working, ECB data showed on Friday.

After long months of contraction, the volume of loans to private businesses and households increased by 0.5 per cent May compared with the same month in 2014, the ECB said in a statement.

The previous month, private sector loans had stagnated.

The long and deep financial crisis in the 19 countries that share the euro has squeezed lending, thus dampening economic activity. But the ECB has launched a raft of different policy measures to get credit flowing again, most significantly a massive programme to buy more than one trillion euros worth of public sector bonds to pump liquidity into the system.